L12- Measures of Development

Question 1

What is HDI

Answer 1

• An index compiled by the UN that measures a country’s economic development
• made of 3 equally weighted indices- education, health, living standards

Question 2

how is education measured

Answer 2

• mean years of schooling for a 25yo

- expected years of schooling for a 5 year old

Question 3

how is health measured

Answer 3

• life expectancy at birth

Question 4

how is living standards measured

Answer 4

• GNI per capita at PPP

Question 5

advantages of hdi

Answer 5

• fairly simple to calculate + understand- broader measure of well being than income
• more accurate measure of economic development than GNP or GDP per capita as it has greater emphasis on human development- quality of life taken into account

Question 6

problems with HDI

Answer 6

• doesn’t take account of inequality or poverty
• health and education indices do not measure quality
• corruption and the environment are not included

Question 7

other measures of development

Answer 7

• IHDI- inequality adjusted HDI

- MPI- Multi-dimensional Poverty Index

Question 8

IHDI

Answer 8

• adjusted for inequalities in the distribution of achievements in each of the 3 dimensions of the HDI
• IHDI will be equal to HDI when there is no inequality, but falls below HDI as inequality rises

Question 9

MPI

Answer 9

• uses health, education and standard of living indicators to determine the degree of poverty experienced by a population
• index considers both the proportion of the population that is deemed poor, and the breadth of poverty experienced by these poor households